Apartments in Alanya at the construction stage

Real Estate Market Analysis in Turkey

The Turkish real estate market demonstrated significant price growth in 2022. According to Endeksa, the annual property price growth in Turkey reached 78% in Turkish lira. The average cost of residential real estate in Turkey in February 2022 was 5,579 Turkish lira per square meter, with the average cost of a property being 736,428 Turkish lira.

Along with the increase in property prices, rental rates in Turkey are also rising. Rental prices in the national currency increased by 17.21% in January 2022 compared to the previous month and by 52.45% compared to January 2021. In resort areas such as Alanya, Antalya, Belek, Bodrum, Didim, and Fethiye, rental rates have increased by 60% or more.

Alanya – a promising region for real estate investment

Alanya, being one of the resort cities, is an attractive location for real estate investment. With the recovery of the country’s tourism industry after the COVID-19 pandemic and the growing demand for long-term rentals from digital nomads relocating to coastal resort cities, housing prices in Alanya are on the rise.

Real estate investments at the construction stage in Alanya

Real estate at the construction stage presents a unique opportunity for investors. It allows investors to purchase property at a lower price compared to finished properties and profit from the increase in value after its completion.

What will happen to the real estate market in Turkey in the future?

In 2022, Turkey increasingly became a final destination for foreign citizens, with over 3 million real estate transactions, out of which 1.3 million were for residential purposes. The share of foreign investments in housing nearly tripled compared to 2021, and 14,000 foreigners obtained property rights. This growth is driven by factors such as the desire to obtain Turkish residency permits and citizenship, as well as preserve and increase capital. The high level of immigration has led to a shortage of rental housing, which has driven up prices. Square meter prices have started to rise sharply and continue to increase.

Changes related to the real estate market are expected in 2023 due to the upcoming presidential elections in Turkey. Discussions are underway regarding the prohibition of granting residency permits to foreign citizens based on rental properties and increasing the investment threshold for obtaining citizenship. It is also mentioned that residence permits are being denied to foreign citizens in areas where the number of foreigners has reached 20% of the total population. For example, in Alanya, the issuance of residence permits has been suspended in certain areas. However, citizenship is still granted if you have invested in real estate worth $400,000 or more.

As for the future of the investment program for obtaining Turkish citizenship, changes may occur due to the large number of citizenship applications. Discussions are ongoing about raising the minimum investment threshold from $400,000 to $750,000 or more. It is unclear whether this will actually happen, but it is a possibility.

Experts believe that throughout 2023, Turkey will remain an attractive destination for relocation for many foreign citizens, despite the significant increase in the cost of purchasing and renting property. Unprecedented price growth for Turkish villas and apartments is expected to continue, with no factors indicating a decrease in square meter prices in Turkey. Demand continues to rise, indicating that prices will continue to increase by the end of 2023.

Please note that this information is subject to change and may not be fully accurate at the current date. For the most up-to-date and accurate information, it is recommended to consult a real estate expert or agency in Turkey. If you need any further information, feel free to ask!